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The Egyptian real estate market in 2025 is experiencing robust growth, with property prices surging across major cities due to strong demand and economic factors. As of September 2025, urban areas are seeing significant appreciation rates while foreign investment continues to increase, making Egypt an attractive but complex market for property investors.
If you want to go deeper, you can check our pack of documents related to the real estate market in Egypt, based on reliable facts and data, not opinions or rumors.
Egypt's property market is experiencing dramatic growth in 2025, with Cairo property prices rising up to 89% year-over-year and rental yields reaching 6-8% in major cities.
Foreign investment has surged 21% due to currency devaluation making properties cheaper for international buyers, though high mortgage rates and economic volatility present significant risks for investors.
| Key Metric | Current Status (Sept 2025) | Trend |
|---|---|---|
| Cairo Property Price Growth | Up to 89.4% YoY | Sharp Increase |
| Alexandria Price Growth | 10-30% annually | Strong Growth |
| Average Rental Yields | 6-8% in major cities | Rising |
| Foreign Investment Inquiries | +21% increase in 2025 | Surging |
| Mortgage Interest Rates | 25-26% (standard) | Very High |
| New Units (Cairo 2025) | 28,500+ residential units | High Supply |
| Construction Cost Growth | Sharp increases | Rising Rapidly |
What's the current trend in property prices across Cairo, Alexandria, and other major cities in Egypt?
Property prices across Egypt's major cities are experiencing unprecedented growth as of September 2025.
Cairo and New Cairo have seen the most dramatic increases, with property prices surging by up to 89.4% year-over-year in early 2025. Alexandria and other major cities are reporting more moderate but still substantial growth of 10-30% annually.
The New Administrative Capital and North Coast areas are leading the appreciation trend, with year-over-year growth reaching 30-50% in some zones. Prime districts in East and West Cairo, particularly the Fifth Settlement and Sixth Settlement, are seeing the highest price growth with some areas reaching EGP 200,000 per square meter.
This sharp price increase is primarily driven by the depreciation of the Egyptian pound, high inflation averaging 14-15%, rapid urbanization, and strong both local and foreign demand. Property has become a preferred hedge against currency devaluation and inflation.
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How fast are property values appreciating year over year in urban versus rural areas?
Urban areas are significantly outpacing rural locations in terms of property value appreciation.
Urban centers, particularly Cairo, Alexandria, and emerging new cities, are experiencing double-digit growth rates ranging from 10% to nearly 90% in some prime locations. The New Administrative Capital, New Cairo, and coastal developments like Ras El Hekma are seeing the highest appreciation rates of 30-50% annually.
In contrast, most rural regions are reporting much more modest appreciation rates of under 7% annually. This disparity reflects the concentration of economic activity, infrastructure development, and population migration toward urban centers.
The currency devaluation and inflation are amplifying these trends, as urban properties with access to amenities and transportation are seen as more stable stores of value compared to rural real estate.
What are rental yields right now in the main cities, and how do they compare to previous years?
Rental yields across Egypt's main cities have improved significantly compared to previous years.
As of September 2025, rental yields now average between 6-8% in primary cities, representing an increase from around 5.5% in the previous year. Mohandessin, New Cairo, and Hurghada are reporting particularly strong yields of 10-13% for certain property types.
Alexandria shows more conservative yields averaging around 5%, while Hurghada properties—which are heavily favored by expatriate residents and international investors—consistently achieve 7-8% returns. Coastal properties and new development areas tend to command premium rental rates.
The improvement in yields reflects both rising rental demand from urban migration and the relative stability of rental income in Egyptian pounds compared to property purchase prices that have been inflated by foreign currency demand.
How is the demand for residential property versus commercial property evolving?
Both residential and commercial property sectors are experiencing strong demand, but with different growth patterns.
Residential demand remains strongest in urban and emerging cities, fueled by internal migration, Egypt's young demographic profile, and new employment opportunities in developing areas. The demand is particularly concentrated in Cairo, New Cairo, Alexandria, and coastal developments.
Commercial real estate is growing at an even faster compound annual rate of over 10%, with retail spaces, logistics facilities, and mixed-use developments thriving especially in New Cairo, Alexandria, and Giza. The co-working and logistics sectors are expanding rapidly due to changing business trends and the growth of e-commerce.
Mixed-use developments that combine residential and commercial elements are becoming increasingly popular, particularly in new city projects where developers can create integrated communities.
What's the level of new housing and commercial supply expected to come onto the market this year?
Egypt is experiencing substantial new supply delivery across both residential and commercial segments in 2025.
| Location | New Residential Units (2025) | Commercial Projects |
|---|---|---|
| Cairo | 28,500+ units | Multiple retail and office complexes |
| New Administrative Capital | 15,000+ units | Government buildings and business districts |
| Alexandria | 8,000+ units | Mixed-use developments |
| North Coast | 12,000+ units | Resort and hospitality projects |
| Hurghada/Red Sea | 6,000+ units | Tourism and retail facilities |
Despite this significant supply increase, demand continues to outpace supply in many areas, particularly in prime urban locations. The government's "1 Million Housing Units" affordable housing plan is contributing substantially to the residential supply pipeline.
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How are foreign investors participating in Egypt's real estate market, and what's driving their interest?
Foreign investment in Egypt's real estate market has surged dramatically in 2025.
Foreign buyer inquiries have increased by 21% in 2025, with particularly strong interest from Gulf countries, European investors, and expatriate Egyptians looking to invest in their home country. This represents a significant acceleration compared to previous years.
The primary drivers attracting foreign investors include the sharp depreciation of the Egyptian pound (over 70% since 2022), which makes properties significantly cheaper when purchased with foreign currency. Additionally, the government has simplified property registration processes, lowered registration fees to just 1%, and introduced new citizenship-by-investment policies for purchases above $300,000.
Foreign investors are particularly focused on Cairo's premium districts, coastal resort areas like the North Coast and Hurghada, and the New Administrative Capital where infrastructure development is most advanced.
It's something we develop in our Egypt property pack.
What are the main government policies, subsidies, or tax changes that could impact property investment?
The Egyptian government has implemented several policies to stimulate the real estate market and attract investment.
Key policy changes include the streamlined property registration process under Law No. 9/2022, which has reduced bureaucratic hurdles and cut registration fees to 1% of property value. The government has also introduced subsidized mortgage initiatives offering rates as low as 3-8% for qualifying buyers, compared to market rates of 25-26%.
New citizenship-by-investment programs allow foreign buyers to obtain Egyptian citizenship for property investments above $300,000, creating additional incentives for international buyers. Tax breaks have been introduced for certain types of development projects, particularly those supporting affordable housing.
The government's massive infrastructure investments in the New Administrative Capital and other new cities, combined with the "1 Million Housing Units" affordable housing initiative, demonstrate strong policy support for continued market development.
How are construction costs, labor, and material prices trending in Egypt right now?
Construction costs are rising sharply across Egypt as of September 2025.
The industry is experiencing record increases in imported materials, energy costs, transportation, and wages, primarily driven by the weak Egyptian pound and persistent inflation. Despite these cost pressures, the construction sector is growing at a real rate of over 6% annually.
Egypt currently has a $120 billion active construction pipeline with an additional $565 billion in planned future projects, especially concentrated in urban centers. This massive scale of development is putting additional pressure on material and labor costs.
The combination of currency devaluation and inflation means that construction materials imported from abroad have become significantly more expensive, though this is partially offset by competitive local labor costs and some locally-sourced materials.
What's the state of mortgage availability and average interest rates for homebuyers in Egypt?
Mortgage availability in Egypt presents a tale of two markets as of September 2025.
| Mortgage Type | Interest Rate | Target Borrowers |
|---|---|---|
| Standard Market Mortgages | 25-26% | General population |
| Subsidized Government Programs | 3-8% | Low/middle-income buyers |
| Developer Financing | 8-15% | New project buyers |
| Foreign Buyer Programs | 12-18% | International investors |
Standard mortgage rates are exceptionally high at 25-26%, tracking the central bank's policy rates. However, government subsidized programs offer dramatically lower rates of 3-8% for qualifying buyers, with 30-year loan terms and low down payment requirements to promote homeownership.
Many developers are also offering their own financing schemes at 8-15% to help buyers navigate the high-rate environment, particularly for new project purchases.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Egypt versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How is the Egyptian pound's exchange rate and inflation affecting real estate affordability?
The Egyptian pound's dramatic devaluation and persistent inflation are fundamentally reshaping real estate affordability.
The Egyptian pound has depreciated over 70% since 2022, creating a dual impact on the market. For foreign buyers, Egyptian real estate has become significantly more affordable when purchasing with hard currencies like USD or EUR. However, for local Egyptian buyers, affordability has been severely impacted.
Current inflation running at just below 15% is driving many Egyptians to view real estate as a necessary hedge against currency devaluation and rising prices. This has increased local demand even as affordability decreases, creating upward pressure on prices.
The government's subsidized mortgage programs and affordable housing initiatives are attempting to maintain accessibility for local buyers, but the high standard mortgage rates of 25-26% make unsubsidized purchases challenging for many Egyptian families.
What sectors or neighborhoods in Egypt are considered the fastest-growing property hotspots?
Several specific areas are emerging as Egypt's fastest-growing property hotspots in 2025.
- New Administrative Capital: Government seat relocation driving massive infrastructure and housing development
- New Cairo (5th Settlement): Established expat and affluent Egyptian community with continuing expansion
- Sheikh Zayed: Premium suburban development with modern amenities and infrastructure
- North Coast: Seasonal and vacation property market with strong rental potential
- Ras El Hekma: Major new resort development project attracting significant investment
- Hurghada: Red Sea tourism hub with strong foreign buyer interest
- 6th of October City: Industrial and residential growth driven by proximity to Cairo
These areas benefit from large-scale infrastructure projects, mixed-use developments, and perceived stability that attracts both end-users and investors seeking lifestyle amenities and capital appreciation potential.
What risks or barriers—political, economic, or regulatory—should investors be aware of before entering the market?
Several significant risks require careful consideration before investing in Egypt's property market.
Economic risks include the ongoing high inflation environment, continued currency volatility, and a tight foreign exchange situation that can impact profit repatriation for foreign investors. The dramatic pound devaluation, while creating opportunities, also indicates underlying economic instability.
Political risks encompass potential policy changes, regional instability concerns, and specific restrictions such as foreign property ownership limitations in the Sinai Peninsula. The evolving regulatory landscape means that property laws and foreign investment rules could change.
Market-specific barriers include affordability challenges for local buyers due to high mortgage rates, potential oversupply in luxury segments, and intense competition among developments. Additionally, global economic headwinds could impact both local demand and foreign investment flows.
Regulatory challenges include navigating the evolving legal framework and new consumer protection rules, which require thorough due diligence and often local legal expertise to navigate successfully.
It's something we develop in our Egypt property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Egypt's property market in 2025 presents compelling opportunities with urban areas experiencing dramatic price appreciation and improving rental yields, particularly attractive for foreign investors benefiting from currency advantages.
However, success requires navigating significant economic volatility, high local interest rates, and regulatory complexities, making thorough research and local expertise essential for any investment decision.
Sources
- Daily News Egypt - Property Prices Soar
- Centro Real Estate - Egyptian Market 2025
- Select Realty - Market Trends and Forecast
- Trading Economics - Egypt Inflation Data
- Global Property Guide - Egypt Rental Yields
- CitizenX - Egypt Citizenship by Investment
- Economy Middle East - Real Estate Boom 2025
- Trading Economics - Egypt Interest Rates